Key to Valley Success

JMU Economist: Slow and Steady Wins the Race

July 14, 2009
Philosopher Manly Hall once wrote, "moderation is the secret of survival." For the city of Harrisonburg, at the heart of Virginia's Shenandoah Valley, those words still ring true. Compared to the rest of the nation, the Valley is is faring well in the midst of economic turmoil. Although unemployment has risen over the last year, Harrisonburg's unemployment rate and cost of living are still about three points below the national average.

Economist Bill Wood, director of the Center for Economic Education at James Madison University, believes moderation is the secret to the area's relative success.

"The national economy is, 'when you're hot, you're hot, but when you're not, you're not.' Our economy is, 'when we're hot, we're not so hot, but when we're not, we're not so cold,'" says Wood. "If you were to plot a chart of the variance of income, then you'd find a wavier line for the national economy than for ours. They're more volatile and we're more stable."

When compared to the rest of the Commonwealth, the same principal applies. Wood adds, "A market fad can affect Northern Virginia more easily than it can here."